New Fortress to sign deal for Mexico’s Lakach offshore gas field next week


U.S.-based New Fortress Energy plans to sign an agreement with the Mexican government next week to develop a liquefied natural gas (LNG) project associated with Mexico’s Lakach offshore gas field, a company executive said on Wednesday. .

A $1.79 billion project by state-owned Petroleos Mexicanos to develop the once abandoned Lakach deepwater natural gas project was approved in October by the Mexican government. oil regulator during the first public session chaired by its newly appointed leader.

The Gulf of Mexico field holds up to 937 billion cubic feet of gas reserves, but high costs have hampered development.

Mexico is now trying to bring in a partner to share the investment, likely through a service contract – a formula used before the country opened up its energy sector in 2013-14 – mainly to build LNG infrastructure and be able to export the gas.

The Lakach LNG facility is expected to be completed in April 2024 and in place by the middle of this year, New Fortress CFO Christopher Guinta told a gas conference in San Antonio.

Lakach LNG will be New Fortress’ third liquefaction plant in Mexico, following two floating LNG facilities to be installed near the port of Altamira on the Gulf Coast next year.

Last month, New Fortress said it had reached deals with Mexico’s state utility Comision Federal de Electricidad (CFE) as part of an alliance pushed by President Andres Manuel Lopez Obrador to make better use of infrastructure. Mexican gas transmission system, increase domestic production and possibly export. LNG.

The agreements included the extension of gas supply from New Fortress to CFE’s power plants, the sale of the La Paz power plant from New Fortress to CFE, and the creation of the new floating LNG hub off Altamira.

CFE has, in recent years, renegotiated several gas and electricity transmission contracts after foreign companies initiated arbitration proceedings and claims against the state-owned company for non-compliance with contractual conditions.

(Reuters – Reporting by Marianna Parraga; editing by Grant McCool)

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